DOJ Sues California Over Regulations Allegedly Pushing Up Egg Prices

Liberal policies have caused “massive inflation” for everyday items such as eggs, said Attorney General Pam Bondi.

A customer shops for eggs at a grocery store in San Rafael, Calif., on Sept. 25, 2024. Justin Sullivan/Getty Images

The Department of Justice (DOJ) filed a lawsuit against California on July 9, challenging state laws that allegedly impose “burdensome red tape on the production of eggs and poultry products” while driving up prices nationally, the department said in a July 9 statement.

“Through a combination of voter initiatives, legislative enactments, and regulations, California has effectively prevented farmers across the country from using a number of agricultural production methods which were in widespread use—and which helped keep eggs affordable,” the lawsuit, filed at the District Court for the Central District of California, reads.

The lawsuit mentions three California laws as problematic: Proposition 2, AB 1437, and Proposition 12.

Proposition 2 amended the California Health and Safety Code, prescribing housing conditions for farm animals such as egg-laying hens. AB 1437 added more sections on this issue to the Safety Code.

According to the lawsuit, Proposition 2 and AB 1437 “caused a sharp decrease in egg production in California.”

Proposition 12 further added or amended egg standards and animal housing requirements.

While Proposition 12 was aimed at strengthening animal welfare and ensuring the quality of eggs sold to people, its requirements were “driven by activists’ conception of what qualifies as ‘cruel’ animal housing, not by consumer purchasing decisions or scientifically based food safety or animal welfare standards,” the complaint stated.

According to a state government website: “California regulations require veal calves, breeding pigs, and egg-laying hens to be housed in systems that comply with specific standards for freedom of movement, cage-free design, and specified minimum floor space. These regulations also prohibit a farm owner or operator from knowingly confining these specific animals in a cruel manner.”

Violation of Proposition 12 is a criminal offense in California, with a penalty of up to $1,000 and 180 days in jail, according to the lawsuit.

The laws challenged in the lawsuit impose “costly requirements” on farmers and have the effect of raising egg prices for Americans nationwide, the DOJ said in its July 9 statement.

California’s laws also oppose the Egg Products Inspection Act, a federal law setting standards regarding eggs, the DOJ stated.

“Americans across the country have suffered the consequences of liberal policies causing massive inflation for everyday items like eggs,” Attorney General Pam Bondi said.

“Under President Trump’s leadership, we will use the full extent of federal law to ensure that American families are free from oppressive regulatory burdens and restore American prosperity.”

Assistant Attorney General Brett Shumate blamed “bureaucratic red tape and unnecessary regulations” implemented by California for everyday goods, such as eggs, becoming unaffordable for Americans.

The DOJ cited President Donald Trump’s Jan. 20 presidential action that called for delivering “emergency price relief” for families. The recent lawsuit is one of the latest DOJ actions aimed at protecting consumers from “predatory commercial practices and regulatory burdens,” it stated.

In addition to the state of California, other defendants in the case include California Gov. Gavin Newsom and California Attorney General Rob Bonta.

The Epoch Times contacted Newsom and Bonta for comment but did not receive any responses by publication time.

The lawsuit comes as egg prices have moderated under the Trump administration.

Prices rose following an avian flu outbreak that has impacted millions of birds since 2022. The average U.S. city price of a dozen eggs was $2.04 in August 2023, according to data from the Federal Reserve Bank of St. Louis. This more than tripled to $6.22 per dozen by March 2025.

However, prices have since dipped, with eggs costing $4.54 per dozen in May, down by 27 percent from the peak in March. On Feb. 26, Agriculture Secretary Brooke Rollins announced a $1 billion strategy aimed at combating avian flu.

In a June 11 statement, the White House credited Trump for “defeating inflation,” citing among other things the falling prices of eggs.

Meanwhile, the wholesale price for graded, loose, White Large shell eggs rose marginally by $0.02 to $2.56 per dozen, according to a July 4 report from the Department of Agriculture.